Question

what is nominal discount rate and effective discount rate?​

Answer 1

$\huge\fbox\green{Question}$

What is nominal discount rate and effective discount rate?

$\huge\fbox\red{Answer}$

A nominal rate of means an effective rate of per every time period. For example if p.a., it means a rate of every year, i.e. every month. A nominal discount rate of means an effective discount rate of per time period. If is the effective discount rate per time period, the discount factor would be per time period.

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Answer 2

Answer:

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